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tv   Mad Money  CNBC  October 11, 2012 11:00pm-12:00am EDT

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i'm jim cramer. welcome to my world. >> they're nuts nuts. they know nothing! >> "mad money." you can't afford to miss it. >> i'm cramer. welcome to "mad money." i'm trying to save you a little money. my job is to entertain and educate. call me. the gulf is huge, wide, growing, both sides are digging in their heels and getting set in their ways, growing more vociferous and partisan. sometimes it seems like the
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name-calling is so wide there is no hope whatsoever for compromise! i'm not talking about the race for the white house, silly. i'm talking about the bulls and bears. that rallied in the morning and getting slammed down in the evening. and the dow is 2.08%. it is a market every street without joy is contested. tonight, i will set out how real this hand-to-hand warfare is determining how this market seems to come out everyday. six small unit actions that represent firing and maneuvering over every square foot of ground that needs to be taken. first, let's deal with the obvious set piece. like the one over employment. the political side of things, charges about phony numbers that show profound change and hiring
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patterns like we had today with market improvement and weekly jobless claims. i don't know, i could care less about the politics. i think the improvement in hiring explains the incredible move of retail and all types of sizes. walmart and costco, nordstroms. tod today's ip largest real estate agency in the country and points to an improving housing market and banks own less than they used to and foreclosures way down and housing construction can't be far away because of the employment number. not because of the politically obama bashers that rebel againsts the robust employment numbers. the stock market bears say forget about those numbers and i'm all washed out and the retail is an accident to happen. sa same-store sales are pumped up bike federal reserves accomodative actions or me on the fed is printing ending up in the coffers of retailers,
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artificial, not long lasting so you can bet against the retailers, not up for any good reason. real estate may be up but hot ip o's with the exception of linkedin have scalded people. and numbers are so small relative to where they were not meaningful to the economy. the second is plain as the hornets' nest such as an in world war ii, the fiscal cliff. bulls say wait a second. upon further review, not a cliff, more of a hill, a negotiated descent if it even happened at all. to the bears, a 2,000 foot crevasse ever vest style made worse by the fact the race for the president is polarizing and long lasting. just wait until the tea party owns the republican party in january. want to see where the battlefield is most stark? consider for a moment the knife
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fight over fedex express. the bears point out this most important worldwide transport guided down not once, twice within a fortnight and painted a picture of a world in steep decline from the stem of asia to the stern of europe. the bulls arrived with a bowie knife sharpened by an analyst talking about next year being a good one and the year after that great one, taking no prisoners. the result hard to argue with a winner and they announced a secondary shortfall above a secondary pre-announcement. you would think the bears are waving a big flag. this is more outlaw josie wael situation. the war never seems to end. what else? we need china back in line. give the bulls the upper hand. how about this will be the bottom for china. chinese are going from headwind to tailwind?
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oh. how about a company that guides down for 2012 because of chb in and admits they will force them to slash their numbers. we have a situation brewing because of the company saying negative things about the communist is the same one portraying positive vision none other than alcoa that gave us both views in the conference call. then there's the animal spirits background going below breaking price. the only one to escape the negative judgment is dave and busters because the restaurant chain pulled the deal entirely. they have the lowest number of acquisitions and mergers than any can recall during the first nine months of the year. today, we have every ipo going through an instant premium the work day becomes public might be the hottest deal since linkedin.
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showing 100% growth, deals? could there be anything more exciting? than sprint the one behind since it was at two bucks and today, traded at $6. yes. possible deal for clearwire, considered road kill just waiting for the turkey buzz ards and the bag gots to work their cu curious magic. there's the work for the hearts and minds of apple's shareholders. they burned out. i stepped into this battle knowing on air what could be more bullish for apple than three well capitalized players wanting to ply you and one lurking to get back in the game, t-mobile desperately needing apple to do something. bears, they were underneath, weren't you? you were there chomping down on apple tearing behind the whole
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bullish cycle of the apple move, would steve jobs approve with the direction of the company and would he fire cook or is there direction at all? this piece of apple real estate changed hands with the bears clearly in charge of the mind share given the decline. i smell manchurian candidate within the share base. we don't know who will win day to day in this trench warfare but we know just like in politics the divide seems to grow increasingly vicious and confusing to people. will it be the trajectory numbers or the terrain, or surprises, the state of china's fortunes and how that cookie crumbles. the heady or lethargic status of the animal spirits and minefield that is apple, everything seems to be on the line every single day which is why this particular moment is more confused by the fog of war than any i can recall for a very long time.
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to nate in california. >> caller: what is going on? >> nothing unusual. how about you. >> caller: let's talk ebay. >> let's chat ebay. >> caller: i bought it a few months ago, we both liked the stock, you mentioned that a few times. up and down, up a little bit a few months ago but on a dip right now. they also just released that new group grouponesque thing they have the daily deals. what do you think? >> i hate to use the words groupon within maybe a 42 mile radius of ebay. ebay is a terrific company if it were just a market, online flea market but worth a lot less. paypal is this future. talk to your kids, paypal is the future. action capital trust owns ebay. we think it's worth more than $50. that's where i think you can go. can we have ed in texas? please, ed. >> caller: boo ya, where the economy in houston is oil is
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pretty good. we know our super rate environment has pushed boat loads of investors with fixed income incomes out of stocks. where does it end? there is a limit of the funds available for stocks. some investors will continue to hold cash. do you see future downward pressure on stocks as the available cash dries up? >> first, it ends for the texans on sunday night. anyway, that's an nbc gig with green bay. here's the deal. everyone's tried to looking through this issue. they all keep saying, listen, the bulb in yield is going to pop. the bubble in yield is going to pop. these companies haven't raised them the way they can. they can increase with buying back stock and increasing the price of stock. i think they will be ecstatic and saying the dividend isn't worth that much. how about if it increases
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dramatically like for warehouser and many companies. these are not treasury bonds, they are organic. they live. just in time for the vice presidential debate, there is a great divide on the street today. when animals attack, bulls and bears go at it again. i'm here to figure out who will win this game. i'll be right back. coming up, utter success? dean food is going to sell and pop after deciding to spinoff its organic food biz. can it continue to milk these gains? cramer pours over the details as healthy week continues. later, red hot? the mercury keeps rising on cramer's hot list of stocks that could close out the year with a bang. so far, six have been added. tonight, two more forces of momentum will join these anointed stocks. stay tuned, the big reveal is next.
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plus, lone star, everything's bigger in texas. in this state, there's no larger fuel franchise than stripes situation as. does the states' oversized job growth make this under the radar company something to fill up on. find out when cramer talk to the ceo. coming up on "mad money." don't miss a second of "mad money," follow @jimcrameron twitter. send an e-mail to cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to "mad monemadmoney.cnbc..
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it's healthy a week. i'm talking about dean foods. you probably don't know it as dean foods but every other brand. i don't necessarily think of it
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as a health stock because milk does a body good. it's because it has a healthy organic foods division, called white wave alpro where they sail organic milk, soy, almond, coconut milk, the way of the future. for ages i thought they would make a terrific spin-off, didn't need to be in dean foods, under that roof. sure enough on august 7th, dean foods took our advice and realized breaking up is easy and profitable to do filing and caused the stock to rocket from $5 to $17 and change and they used 3.5 million dollars to pay down the debt on its balance sheet and still own white wave, my healthy meat. and they will be giving an independent valuation and won't be lost within a larger commodity milk company and should make white wave and dean
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go substantially higher. this company has clearly caught breakup 5. management is trying to unlock value for shareholders by putting them separately than under the same roof. that's a strategy you can't get enough of here. and it gets larger and larger and sometimes leads to bigger bonuses but greg iengols who is committed to this announced a possible sale of morningstar business that makes creams, coffee mixes, aerosol whipped toppings and blended ice beverages, doesn't that sound something b & g should be buying. it mostly sells to restaurant. they have not found a buyer for morningstar. sh the talk is they could sell for a billion dollars but too big for white wave. the stock has bielling falling ever since they spiked up on the
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announcement of the white wave ipo and now pulled back to $14.65. almost as if it's doing nothing to enhance the shareholder value when dean is doing a ton of things. there are reasons dean foods has been coming down. just today, ubs cut estimates based on worries about food cost inflation pointing out milk prices have increased by 24 cents since bottoming. that is crucial to the bottom line. it's not good. last quarter the management reported dean's inventory remains high and we shouldn't be overly concerned and taking out costs in the dairy business left and right. they control 38% of the market and that gives the company some pricing power. even if the increase in milk prices hurts dean foods, i'm not saying it won't, probably will. this is getting baked into a $14 and change share price and could drop other buck if they were to slash estimates big but that's
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rallying nicely higher if it doesn't. that's a good risk award. now that dean foods is breaking itself up, the key issue for this company is not what's the price of milk, how much value dean can unlock by spinning off the whitewater portion and selling morningstar. this is one of those stories the sum of the parts i think vastly exceeds the whole. goldman sachs did an analysis and they came up with pretty much the same number, when you break the company down into its component parts and fresh products and spinning off morningstar biz dean is trying to sell, give each one its own valuation they're trading, that's called the comps, add them all up. these firms say the sum of the parts is worth $20 a share although there was one a little higher. 30% higher than where dean foods is trading now and we agree with the valuations and we did it
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ourselves. i'm not suggesting the company should break up and outline how much it could make if they were willing to embrace our ideas. they have already done it and already broke it up and already said they're willing to share morningstar. this is happening. that $20 price is not a pie in the sky thing if we could get manage document do the right thing. no, management is doing the right thing. given their plan, $20 is where i expect the $14 stock to go. even if they can't find a buyer for morningstar, i think it is going to 18 on the strength of the whitewater -- white wave ipo. whitewater, clinton. it spiked on the news the ipo was happening and worries about the rising price of milk. a strong move by white wave could cause them to move up. you have to consider this white wave company is in the same pantheon as haines, celestial,
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two stocks highly valued in large part because the market likes companies that recognize healthy eating is the way of the future for years and years and not just a healthy week at n nbcunivers nbcuniversal. healthy group produces profits. huge consumers of the products will tell you for the record they think silk is the milk of choice. bottom line. dean foods has a healthy organic division buried in their milk and dairy business no one seems to want it right now and they're doing the right thing to have a hot and healthy organic one. i think this is a terrific opportunity to buy a great breakup story at a discount to where i expect it to travel right back up to. after the break, i'll try to make you even more money. coming up, red hot? the mercury keeps rising on
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cramer's hot list of stocks that could close out the year with a bang. so far, six have been added. tonight, two more forces of momentum will join these anointed stocks. stay tuned, the big reveal is next. later, lone star? everything is bigger in texas. in this state, there's no larger fuel franchise than stripes stations. does the state's oversized job growth make this under the radar company something to fill up on? find out when cramer talks to the ceo, all coming up on "mad money."
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all week i have been taking you behind the scenes of the neverending wall street fashion show. now entering the fourth quarter and money managers start to get antsy. they know when the year ends their clients will want to see they played the hottest trends and owned the hottest stocks out there. not only that. their investors want to see they were overweight the best performers meaning they own large positions in the stocks. for many this is a matter of survival. if the end of the year rolls around and investors see they don't own any of the obvious stocks that have been on fire all year, those investors may pull their money
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out. that can hurt the survivability of the fund. which means so many managers have no choice but while the market is coming down, to pay up for the stocks that have already had enormous runs. that creates the dynamic i have been talking about this week. in the fourth quarter some of the best performers are anointed even in a sell-off like they can't go out of style until the end of the year no matter how expensive they get. they aren't actually cheap. so many hedge fund and mutual fund managers are buying them nonstop if only to show investors these guys, themselves, they were smart. they own the right ones! i have been highlighting these anointed stocks in pairs starting with amazon and google. then we have visa and master card. last night we put lipstick on a tractor with ulta and tractor supply. doesn't mean they will go straight up. that's wrong. they are still hostage to the market. i'm saying as they come down, remember, there are buyers
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undernea underneath. tonight i have two more. unlike the others they are not in the same sector. we are looking at painting and drinking. two things you shouldn't do at the same time. definitely shouldn't do out of the same container. i'm talking about sherwin williams, the paint company up 67% for the year already. perhaps the best looking one-year chart on the planet and diageo which rallied 30% year to date. these are unsinkable. let's start with sherwin williams. when you decide to sell your house, first you give it a new coat of paint to freshen it up. then the new family wants to pick their own color so they repaint it again. end of the year, you better believe every portfolio manager will be asked how he played the housing rebound. if he's smart he can tell clients, i did it with sherwin williams. yesterday there was a moment when the dow was down 169 points but sherwin williams was up. that's an important tell. gives you an idea how resilient the anointed stocks are. sherwin williams pulled back
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more than a dollar today. i think this is the opportunity to start a position in a stock that's been roaring all year. again, this is not a guarantee that the stocks will go up. just the opposite. as the market sells off these are the stocks to go for. sherwin williams deserves to go higher. not just because the money managers will buy it hand over fist the next 2 1/2 months, because the company is, indeed, in terrific shape. come on, man. this is a paint company. overall sales grew 9% translating into a 31% increase in the company's earnings per share. tremendous operating leverage. didn't know they had it in them. frs plus not only is sherwin williams selling more paint thanks to the housing rebound they can benefit from declines in the raw materials that go into paint. some of the most important raw materials have stabilized or already have come down. the price of propylene declined as has titanium dioxide, a
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crucial ingredient for making paint. that's a whitener. you get it in toothpaste and paint. sherwin williams is selling for 19.2 next year's earnings with a 16% long term growth rate. not dirt cheap. but they are looking into the future seeing sherwin-williams is just 16.8 times 2013 earnings estimate. based on those numbers, the out years, you can make a case that it's cheap which they do. plus you can make a case the analysts missed this one. only 12 analysts have eyes on it with three buys. and underunder performance. the analyst community. some of them will upgrade the stock. we have the paint side covered. what about the drinking thing? that's diageo, the giant liquor brands including johnnie walker, j & b, smirnoff, kettle one. bailey's. two-fisted drinker.
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irish cream guinness, captain morgan. jose cuervo. my cat's name. and tanqueray gin. of all the major liquor companies, diageo is the least exposure to europe. 21% of the business and the most exposure to emerging markets accounting for 40% of the sales. this company figured it out. including china. diageo is the number one international spirits company in latin america and africa. by 2015 they should make up more than 50%. this is the alcohol stock to own. up 30% this year. i think it rallies even more before 2012 is over. this is a master of branding. it owns 7 of the top 20 global liquor brands. each product category, it has created a whole spectrum of products, shelf space grabbers running from good to better to best. think about johnny walker. don't want to spend much? you can always buy johnnie
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walker red. even though it sits at the only intersection between diageo and sherwin-williams because it goes down like paint thinner. [ rim shot ] >> 67-year-old man running on set. or pay more for johnny walker black which my staff didn't get bother to get because they switched right to gold. black is my drink of choice. when i'm not sipping cheap scotch on my dirty linoleum floor or you can pay for the nose for johnnie walker blue, which is overprice versus my favorite lagavulin. they are getting off the linoleum floor. it has the highest yield and most sustainable growth. it's the cheapest. 10% long-material growth rate. much lower valuation than beam
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or ground foreman. substantially smaller dividends and growth rates slightly higher. the street is backing away. bottom line. sherwin-williams and diageo, made for each other. they have been anointed. these names have had terrific runs so far this year. i bet they keep going right into the first quarter. they are exactly the kinds of stocks money managers will accumulate in order to show they were participating in the winners and not wallowing in the losers of 2012. i want to go to keno in texas. >> caller: what's up, jim? love the show. >> thanks, man. what's going on with you? doing the show here with some choice brands. i'm now playing with. what's going on? >> caller: today i have a stock of morrison coors brewing company. >> yeah. >> caller: for three months i have seen coors fluctuate between $40 to $46 a share. to a consumer and fan, beer and sports go hand in hand. around this time the campaigns revolve around the nba so i expect an increase in yield and production in the next six
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months. i guess my question is, buy more? sell now? >> believe it or not this doesn't have the great growth potential i first thought it did when they merged. i do actually like bud more. i like constellation more and i certainly like diageo more. when it comes down to beer, last night i had a pabst blue ribbon. sometimes i have a coors light but that doesn't make it the best stock. simon? >> caller: boo-yah. thanks for everything you do for the small investors. >> doing my best. thank you, simon. >> caller: linn energy is pricing to make it easier for iras and 401(k)s to participate in the limited partnerships high yield without tax headaches. do you recommend picking up some lame code ticker or --
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>> you know, when i first looked at it it was terrific. i wanted to see where it was priced, where it trades. i don't want to say, yeah, it's good or bad. all these are about price. as i have learned too well with some of them that were -- that looked cheap for me but it turned out to be overpriced. let me come back online. john in oregon, please. john? >> caller: hey, jim. boo-yah from western oregon. i have a question about the home construction. i'm caught holding d.r. horton at a kind of loss. do you think the nice ride that we have had on residential construction is over with or not? >> this is a group and i was doing work on toll brothers. they have big spurts, then slam downs. everyone says it's over in the slam down and you should be a buyer not a seller. i'm not backing it either way,
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it's right to buy. you want to get it, try these hot list momentum stocks. remember, no guarantee they won't go down. they will go down hard in the big sell-off. but this is what will come up and go strongly in the end of the year because they're such winners. welcome to sherwin williams and diageo to the hot list. don't move. the lightning round is next. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. e want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment?
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>> announcer: lightning round is sponsored by td ameritrade. [ bell ringing ] >> it is time. it is time for the lightning round. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round on cramer's "mad money." darren in south carolina. darren? >> caller: boo-yah, jim! >> right back at you, partner. >> caller: yes, sir. jim, i'm interested in mwe. >> stay interested! it's a good one. that's the company that has marcelus assets in pennsylvania. they have a good distribution. jim in florida. jim! >> caller: dr. cramer, i presume. >> you betcha it is. what's going on, chief?
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>> caller: i need your best medical advice as soon as possible. i'm not good at anatomy but i have a bad pain in my option area and it's spreading to my wallet area. >> i'm not a proctologist. >> caller: $140 call option on salesforce.com which expires next month. i wonder if i'm on death watch. >> look, i think you should roll it over to another contract. i don't want you to have a gun to your head. i do think salesforce.com is doing well. if we are just trying to play that next month that's dicey for me. roll it out. then you will do better. take the gun away from the head, sir. let's go to joe in florida. joe! >> caller: boo-yah, jim, from vero beach, florida. my question is about nps pharmaceuticals. sticker npsc. >> i like it as a good spec.
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you live by my friend near you, spanish house where i may surf this winter. jeff in new york, please. jeff! >> caller: how are you? love the show. >> thank you. >> caller: calling about opco health. the ceo has some new products coming out. >> i wish dr. frost would come back on the show. i would love to know what's really going on. the stock is a great spec. if the doctor comes on we can flesh it out even better. let's do that. leslie in florida, please. >> caller: boo-yah, jim. >> boo-yah. >> caller: i'm in sunny south ft. myers, florida. how about verizon? >> i got to tell you, verizon is under pressure because of the possibility of sprint and the t-mobile tie-up with pcs. verizon has a chart that looks like it will be peaking out. when it gets to 5% yield let's pull the trigger. let it come in a little. there is too much competition where there was none five weeks ago. eileen in ohio. >> caller: hi, jim. i enjoy your show. >> thank you.
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>> caller: i want to know if i should sell my duke stock since their merger with progress. >> no, no. duke is fine. obviously you would do better under a romney regime than an obama regime but i like it. it's a battleground play but the dividend could grow higher. ron in texas. >> caller: big boo-yah from dallas, texas. thanks for taking my call. >> wrong romo. go ahead. >> caller: can i get your opinion on consolidated edison, con-ed? >> lots of people giving up on con-ed. i'm listening to the ceo of realogy talking about the growth market. this is a good stock. i wish it had a 4.5% yield. i will bless it at 4% because of the balance sheet and growth prospects for a dividend play. chris in georgia, please. >> caller: boo-yah, jim. what do you think of akam. >> positive note today.
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the business is actually very strong. it's a commodity streaming business. i don't want to own that. i think it's played out. lisa in missouri. lisa! >> caller: jim, can i say boo-yah st. louis cardinals? >> absolutely. >> caller: i'm calling about pfizer and i wonder if i should sell it or hold on? >> you know what, it's at 25. i think it can go back to 22, 23. not more than that. there is no reason to sell it. i don't like it as much as bristol-myers. richie in california, please. >> sunny san diego boo-yah, mr. cramer. >> sounds good to me. >> caller: what's up with starbucks the last two weeks? >> which one? >> caller: starbucks. >> oh, this is going down. stephanie link, both of us feel you lay and wait. buy a little bit here. let it come in and go for a
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multi year turn we think howard schultz is engineering. everyone has given up on schultz. sound familiar? that's what they did when starbucks was at 18. he was there to turn it around. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.
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if you're looking for investments to generate income then high yielding stocks are the only game in town. the fed committed to keeping interest rates ultra low through 2015 there is no way to get a decent return from treasury bonds, certificates of deposit. we are always searching for ways to get yield in a safe way on "mad money." tonight i want to introduce you to susser petroleum partners. it's a master limited partnership, the largest motor fuel distributor in texas. s susser petroleum was spun off out of susser holdings which operates a chain of convenience stores last month. it's the mlp we are interested in with a bountiful 7.2% eeb. it has gas stations including
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the gas stations including the gas station of its parent as well as other small mom and pop operations. 90% of volumes based on long term fee based contracts with a fixed profit of 3.4 cents per gallon they ship. that's the consistent utility business model we like. plus, the company has terrific growth prospects because the stripes, the name of the gas and convenience store chain owned by its parent, they're dominant in texas and expanding quickly. they have a $235 million capacity on a revolving credit facility that can allow them to do acquisitions. we have stripes merchandise on the table here in case you hadn't filled up lately in the lone star state. this is an intriguing story probably unknown to you. i want to learn more about it. let's talk to the chairman and ceo of susser to learn more about where the company is going and what it does. i know it's probably unclear to you. mr. susser, welcome to "mad
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money." >> thank you. thaw for having me. >> i studied it and said, you know, i have to ask him at the beginning. explaining the difference between stripes and susser the parent, what you do and why one is more consistent and one may have more growth. >> thanks, jim. >> sure. >> susser holdings, our parent company, is the operator of over 550 stripes branded convenience stores most of which with a laredo taco company mexican restaurant concept inside. our business has a great track record of same a store sales growth, but inherent in retail operation is volatility with fuel margins that move up and down. >> like from costco recently. it's been squeezed in the fuel markets. >> absolutely. the fuel distribution side of our business, something we have been at for over 70 years is stable. we have now taken public that s subsidiary, susser petroleum
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partners. as you mentioned in the intro susser petroleum partners has a strong track record of stable fuel margins. the real lever of the business is growing fuel volume. we have been growing it at a very healthy rate for over 20 years. the more stripes stores you put up the better this master limited partnership should do? >> absolutely. there is gross profit from new stripes stores. we'll build 26 this year. we have guidance for 28 to 35 next year along with sales growth relating to the wholesale distribution to third party customers we produced year in, year out. all that pretty much flows through to distributable cash flow and will hopefully allow us to grow that dividend in the years to come. >> in your presentations which are numerous and very self-explanatory for those who want to know more about susser, either parent or sub. you link yourself to texas. why can't this be a regional to national store? >> our business has wonderful scaleability, jim.
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we think we will continue to expand our footprint. but our core markets which are texas, oklahoma, new mexico and a little bit of louisiana, have fabulous dem graphics and are very very large. if you picked up our existing footprint and spread it out, our territory is as big as boston to new orleans. it's a large territory. huge growth. we see the opportunity to build a larger, stronger business continuing in our trends in the coming years. >> one thing occurred to me, we have seen from time-to-time, sunoco got bought out by energy transfer and circle k, others in the business. why have they not done mlp similar to this? we don't have a lot without a lot of risk. >> i think that we are the first to take advantage of the mlp structure inside the fuel distribution side of the business. but there are other companies, i
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think, that study it hard. there may be other names that come to market this year. >> let's talk about fuel. we are very interested in natural gas, texas, oklahoma. huge amount of natural gas. would you ever see that stripes would ever have compressed natural gas pumps? >> jim, i think we will have a couple of sites in test mode in the next six months. >> really? >> we are looking at partnering with major oil producers in the permean and eagleford shale play which are big markets for us. important markets. we are working with a couple of large producers that want to try to get that product to market. we're going to test it and see how it does the and if there is an appetite we'll continue to grow that and distribute natural gas as well. >> that's terrific. >> i understand as you add stores, there's the possibility you can bump up the contributions, so we shouldn't
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look at it like a static rate? >> we are confident we can grow the distribution meaningfully in the coming years and it should be a very stable, solid producer of dividend income for investors. susser holdings are the parent. hopefully we'll be faster growing company with volatility. susser petroleum partners is designed to be a steady reliable producer of increased yield in years ahead. >> this is what i'm talking about. you know how hard it is to find steady, reliable income. susser petroleum partners is offering precisely what we are looking for on "mad money." we'll be right back after the break. thank you. >> coming up, hold the phone. sprint ran higher today on takeover news. but before you ring up the games should you hang on the line for more or is it time to disconnect? don't move. cramer makes the call.
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is sprint for sale? will giant japanese firms swoop down and buy a big percentage of it? will shareholders approve the transaction? will clear water be part of the deal or is the more than 70% of that stock going to appeal instantly when we find out more what's going on. these are the questions that swirled around one of our
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favorite stocks. nobody seems to know really what's happening, although my colleague, david, laid out the template better than any. with access to sprint spectrum and sprint acquiring clearwater. i don't like making decisions in a vacuum but both have a huge amount of debt. it is the bond market i believe will control these deals and not the stock market. sprint needs capital to complete the capital. to convert sprint to their syst system, sprint almost went under because of the nextel acquisition, but the ceo put the business back on a growth path out of sheer street smarts and fabulous customer service. however many observers feel it is outgunned and under manned versus at&t and verizon. i feel they have done a good job and would have access to the capital they need through the bond market to finish the build out. sprint's bonds have been the belle of the junk market.
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but a $12 billion investment would allow sprint to borrow at low rates resolving the larger solvency issues that have repeatedly dogged this company. a well capitalized sprint could give verizon and at&t a run for their money. to me that's a keeper. despite this move up today which didn't take it much further than the stock moved before the pcs deal with t-mobile. clearwater is the horse of a different color. while the company has valuable assets it owes billions with debt and so little cash. it would be foolish to buy the 50% of clear wire stock, better to allow them to buy the company in a reorganization. that makes me want to be a seller of clearwire. i never recommend stocks on a takeover basis. that's all you're doing with saying buy clear wire here. no matter what it's important to recognize that dan hessy has done right by shareholders since day one. i have the conviction to buy more sprint below $5 if the
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softbank deal was all smoke and no fire. the real winner is you, the consumer. the more well capitalized players there are in the wireless industry, the better things are for all of us. three cheers if the softbank investment is the real deal. stay with cramer. [ male announcer ] the 2013 smart comes with 8 airbags, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety.
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